The federal government comes out with specific tax laws and it is up to the states to conform to the tax laws or not.California, unfortunately, is a state that does not conform to a lot of the favorable federal tax laws.

Economies of scale work in your favor because if one tenant moves out then it has less impact plus there is only one roof and still four walls.

Apartment communities still get favorable pricing and many have HVAC certified techs on staff; so, it's exponentially more efficient than SFR.

From What you described - it seems like this deal favors the owner heavily and places an exorbitant amount of risk on you.  

Real estate is your way to stack the odds in your favor

The algorithms favor highest occupancy.

This is a short term example of the power of REI, and why so many here are so in favor of buying deals that work and meet their criteria today.Good luck!

I prefer month-to-month or a six-month lease, with the understanding they have to sign a one-year lease in the spring.I definitely understand that a longer term lease favors the tenant more than the landlord.

Down side would be having to keep the money in the SDIRA, not as favorable loan options (non-recourse required) & possible UBIT tax on SDIRA, not solo 401(k) from what I understand. 

Overall it is a very difficult market to be in but depending on your investment strategy it can still work out in your favor.